SBA Loan Default and the SBA Disaster Relief Loan
We will analyze your SBA loan problems and advise you on potential solutions such as an SBA offer in compromise.
Most small business owners take immense pride in what they've created, and seeing it fall into financial ruin can be devastating to say the least. However, there may come a time when you need to close your business's doors. Continue reading to learn more, and contact Protect Law Group, a SBA debt resolution attorney for a free consultation today.
If you are spending countless sleepless nights because you are worrying about the vitality of your business, if you've gained weight, if you've stopped exercising, and if you've stopped doing your hobbies, then it's probably time to consider closing your business's doors.
There is no doubt that running a small business takes a lot of work, and going it alone or with just a few employees can be completely overwhelming. If you are constantly feeling defeated, deflated, and indifferent, it may be time to move on to something else.
If your business is not working, your employees are usually the first to see it. When you start losing key employees, morale is low, and your employees are doing more complaining than problem solving, your business is suffering.
When you are perpetually going into the red every month to keep your business afloat and you can't pay your debts, there will come a time when your funds have dried out. Hopefully, you won't lose everything before then. If you are in default on an SBA loan, let our SBA attorneys help.
Protect Law Group specializes in helping those whose SBA loans are delinquent or in default status. Our mission is to help you obtain a favorable outcome and not lose everything you've worked so hard to build. Call for a free consultation today!
Millions of Dollars in SBA Debts Resolved via Offer in Compromise and Negotiated Repayment Agreements without our Clients filing for Bankruptcy or Facing Home Foreclosure
Millions of Dollars in Treasury Debts Defended Against via AWG Hearings, Treasury Offset Program Resolution, Cross-servicing Disputes, Private Collection Agency Representation, Compromise Offers and Negotiated Repayment Agreements
Our Attorneys are Authorized by the Agency Practice Act to Represent Federal Debtors Nationwide before the SBA, The SBA Office of Hearings and Appeals, the Treasury Department, and the Bureau of Fiscal Service.
Clients obtained an SBA 7(a) loan for their small business in the amount of $298,000. They pledged their primary residence and personal guarantees as direct collateral for the loan. The business failed, the lender was paid the 7(a) guaranty money and the debt was assigned to the SBA. Clients received the Official 60-Day Notice giving them a couple of options to resolve the debt balance directly with the SBA before referral to Treasury's Bureau of Fiscal Service. The risk of referral to Treasury would add nearly $95,000 to the SBA principal loan balance. With the default interest rate at 7.5%, the amount of money to pay toward interest was projected at $198,600. Clients hired the Firm with only 4 days left to respond to the 60-Day due process notice. Because the clients were not eligible for an Offer in Compromise (OIC) due to the significant equity in their home and the SBA lien encumbering it, the Firm Attorneys proposed a Structured Workout to resolve the SBA debt. After back and forth negotiations, the SBA Loan Specialist assigned to the case approved the Workout terms which prevented potential foreclosure of their home, but also saved the clients approximately $294,000 over the agreed-upon Workout term with a waiver of all contractual and statutory administrative fees, collection costs, penalties, and interest.
Client personally guaranteed SBA 7(a) loan balance of over $150,000. Business failed and eventually shut down. SBA then pursued client for the balance. We intervened and was able to present an SBA OIC that was accepted for $30,000.
Client received the SBA's Official 60-Day Notice for a loan that was obtained by her small business in 2001. The SBA loan went into default in 2004 but after hearing nothing from the SBA lender or the SBA for 20 years, out of the blue, she received the SBA's collection due process notice which provided her with only one of four options: (1) repay the entire accelerated balance immediately; (2) negotiate a repayment arrangement; (3) challenge the legal enforceability of the debt with evidence; or (4) request an OHA hearing before a U.S. Administrative Law Judge.
Client hired the Firm to represent her with only 13 days left before the expiration deadline to respond to the SBA's Official 60-Day Notice. The Firm attorneys immediately researched the SBA's Official loan database to obtain information regarding the 7(a) loan. Thereafter, the Firm attorneys conducted legal research and asserted certain affirmative defenses challenging the legal enforceability of the debt. A written response was timely filed to the 60-Day Notice with the SBA subsequently agreeing with the client's affirmative defenses and legal arguments. As a result, the SBA rendered a decision immediately terminating collection of the debt against the client's alleged personal guarantee liability saving her $50,000.
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